The Takeover Panel's regulatory activities will be placed on a statutory framework for the first time from tomorrow when the second phase of the Companies Act 2006 comes into effect. Part 28 of the Act gives the Takeover Panel the power to make statutory rules while keeping the right to determine its own constitutional and operational framework. Previously the rules on takeovers were set out in the Takeover Code, which historically had no statutory basis.
(Media-Newswire.com) - The Takeover Panel's regulatory activities will be placed on a statutory framework for the first time from tomorrow when the second phase of the Companies Act 2006 comes into effect.
Part 28 of the Act gives the Takeover Panel the power to make statutory rules while keeping the right to determine its own constitutional and operational framework. Previously the rules on takeovers were set out in the Takeover Code, which historically had no statutory basis.
This and other changes will further boost the benefits to business from the reform of company law undertaken by the Government in the Companies Act 2006.
An effective, well run system of takeover regulation is crucial for the confidence and well being of financial markets. The Takeover Panel has made an important contribution to the competitiveness of UK financial markets over the last 40 years. These provisions will help ensure it continues to be a strong, independent and highly regarded organisation.
Also from tomorrow company directors will no longer have to disclose their age if they are over 70. The prohibition on directors dealing in share options will also be removed and for non quoted companies directors and their families will no longer be required to disclose their share dealings.
In addition, the right to set up and register a business as a Community Interest Company will be extended to Northern Ireland. This will make it simpler and easier to establish a business whose profits and assets are to be used for the benefit of the community.
Notes to editors
1. Information on the history, aims and current functions of the Takeover Panel can be found on its website: http://www.thetakeoverpanel.org.uk.
2. Part 28 ( Takeovers ) is connected with implementation of the EU Takeovers Directive. These provisions, placing the regulatory activities of the Takeover Panel within a wholly statutory framework, will replace Regulations which came into force on 20 May last year and implemented the Directive on an interim basis while the Companies Act completed Parliamentary passage ( SI 2006/1183 );
Department of Trade and Industry 7th Floor 1 Victoria Street London SW1H 0ET Public Enquiries +44 ( 0 )20 7215 5000 Textphone +44 ( 0 )20 7215 6740 ( for those with hearing impairment ) http://www.dti.gov.uk
Client ref Reference P/2006/77
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